What is the definition of 'reasonable' legal fees and administrative costs that All County charges for a transfer?
All_County Franchise · 2025 FDDAnswer from 2025 FDD Document
sing contributions and expenditures, duration and other rights and obligations than those provided in this Agreement). In the event this Agreement is transferred to a third party transferee in accordance with the terms of this Agreement and the remaining Term of this Agreement is two (2) years or less, then you acknowledge that prior to any such transfer you must notify the proposed transferee in writing, with additional written notice to us, that as a required condition of the proposed transfer the transferee must be willing
to execute our then current standard franchise agreement. Our then current franchise agreement shall include a complete term of effectiveness, unless otherwise we agree in writing with the proposed transferee to some other modified term of the franchise agreement, in our sole business judgment.
- 20.4.5. Transfer Fees. You must pay us a transfer fee in the amount of Ten Thousand Dollars ($10,000) at the time of the proposed transfer. In addition to the transfer fee, you agree t
Source: Item 23 — Receipts (FDD pages 43–157)
What This Means (2025 FDD)
According to All County's 2025 Franchise Disclosure Document, in addition to a $10,000 transfer fee, a franchisee must pay All County's reasonable legal fees and administrative costs incurred, as well as reasonable out-of-pocket expenses, including travel, meals, lodging, and other investigative expenses, when transferring their franchise. These costs are associated with All County meeting with or qualifying the transferee. If the transfer is among the franchisee's owners or first or second-degree relatives, the $10,000 transfer fee is waived. However, the franchisee is still required to reimburse All County for any reasonable legal and administrative costs incurred in connection with the transfer.
Additionally, the transferee must pay All County a separate Transferee Administrative Fee of $2,500 for administrative and other expenses All County incurs in connection with the transfer. This fee is due when the transferee executes a franchise agreement or any other separate agreement with All County making the transfer effective.
The FDD does not provide a specific definition of 'reasonable' legal fees and administrative costs. It only states that the franchisee is responsible for covering these costs, along with associated out-of-pocket expenses, during the transfer process. This lack of a concrete definition could lead to uncertainty for franchisees regarding the potential expenses involved in transferring their All County franchise.
Prospective franchisees should seek clarification from All County regarding the typical range of these 'reasonable' legal and administrative costs. Understanding how these costs are calculated and what specific expenses they encompass is crucial for financial planning and decision-making related to a potential franchise transfer.